MicroStrategy continues to increase its holdings of BTC! Bernstein raises MSTR target price

"MicroStrategy" is the publicly listed company with the most BTC holdings globally. According to the latest research report from Wall Street investment firm Bernstein, MicroStrategy's cryptocurrency holdings are expected to continue increasing, estimated to account for 4% of the total BTC circulation within the next 10 years. At the same time, Bernstein has raised the target price of the company's stock from $290 to $600 and expects it to be achieved by the end of 2025.

Bernstein analyst Gautam Chhugani described MicroStrategy as a 'BTC magnet,' an enterprise that continuously attracts global capital into the BTC market. The report points out that MicroStrategy's unprecedented BTC strategy has made the company a special presence on Wall Street.

Gautam Chhugani pointed out that the success of MicroStrategy relies on three key factors:

Whether investors are optimistic about BTC in the long term;

Is the company able to withstand the risks of Liquidity and bankruptcy?

Can the capital scale continue to expand and maintain competitiveness in the long term.

MSTR Target Price Raised

In June of this year, Bernstein set MicroStrategy's target price at $290, when MSTR's stock price was only $148. However, with the stock price doubling and soaring over the past few months, it has risen 509% since the beginning of the year, and MSTR has now exceeded $421. The latest target price of $600 means that this stock still has 42% upside.

MicroStrategy recently spent $5.4 billion to increase its Bitcoin holdings by 55,500 BTC, bringing the total number of coins held to 3,867,000.

According to Bernstein's 'base case' projection, MicroStrategy is expected to hold 4% of the total BTC circulation supply by the end of 2033, approximately 830,000 BTC. If the price of BTC surpasses $1 million at that time, the value of these BTC will reach as high as $830 billion.

Analysts believe that the long-term convertible unsecured debt structure currently adopted by MicroStrategy minimizes the Liquidity risk on the company's balance sheet, so that even the Fluctuation in BTC price does not pose a threat.

MicroStrategy has successfully raised $3 billion in convertible bonds and $6.6 billion in equity funding this year.

Despite Bernstein analyst's optimistic outlook on MicroStrategy, there are also conservative voices in the market. Citron Research, a well-known shorting institution, believes that MicroStrategy's Trading Volume has "completely detached from the fundamentals of BTC", so they have shorted MicroStrategy for hedging purposes.

〈Bullish on MicroStrategy continues to add BTC! Bernstein raises MSTR target price〉This article was first published in "Blocklike".